OrthoAccel Announces $12 Million Series C Financing and New Investor, Piper Jaffray Merchant Banking
HOUSTON, May 4, 2016 /PRNewswire/ -- OrthoAccel® Technologies, Inc. today announced completion of a $12 million Series C financing round, which included the privately held company's two existing institutional equity investors, S3 Ventures and HealthpointCapital, as well as a new investor, Piper Jaffray Merchant Banking. An orthodontic innovation company, OrthoAccel manufactures AcceleDent®, an FDA-cleared, Class II medical device that speeds up orthodontic treatment by as much as 50 percent and relieves discomfort often associated with treatment.
This financing announcement comes as AcceleDent is now available in more than 3,000 orthodontic locations in North America and nearly 800 international locations. OrthoAccel's 80 percent increase in sales in 2015 is fueled by the orthodontic industry's continued adoption of the benefits of accelerated treatment with AcceleDent.
"We are proud to have esteemed and knowledgeable investment partners who believe in OrthoAccel's vision to revolutionize the orthodontic industry through innovation that enhances the patient experience," said Michael K. Lowe, president and CEO of OrthoAccel. "Continuing to build on another year of dynamic sales growth and market penetration, this investment provides the resources needed to realize our next stage of market share growth."
Lowe added that OrthoAccel's expansion plans include aggressive revenue growth internationally and in North America. The company is actively adding 18 new sales representatives, with nine dedicated to expanding direct sales in Europe. Headquartered in Houston, OrthoAccel's growth plans include adding 30 employees to support functions such as marketing, innovation, operations and clinical education.
"We have been impressed with the rapid growth of OrthoAccel to date," said Tom Schnettler, Piper Jaffray vice chairman and managing director of merchant banking. "The AcceleDent® technology represents a significant advancement in orthodontic treatment technology for patients and positively impacts orthodontic practices at the same time, creating a large global market opportunity for the company."
A leading investment bank and asset management firm, Piper Jaffray Companies (NYSE: PJC) is a longstanding leader in healthcare investment banking with a significant focus on medical technology. Piper Jaffray Merchant Banking, the private equity arm of Piper Jaffray, manages growth equity investment funds that invest within the firm's areas of industry focus, including medical technology and information-driven healthcare technologies.
Looking to the second half of 2016 and 2017, Lowe says, "This round of funding will drive our company to capture even more of the global market share in accelerated orthodontics, reinforcing our position as the leader of this category."
With a growing body of clinical evidence and high patient satisfaction scores, AcceleDent is being incorporated as standard of care in many practices because orthodontists are finding that AcceleDent resolves the two most common barriers to treatment –length of treatment and discomfort– while improving practice efficiencies and economics.
AcceleDent is the most common accelerated treatment technique used by orthodontists according to the Journal of Clinical Orthodontics. A hands-free, noninvasive medical device, AcceleDent employs patented SoftPulse Technology® that accelerates tooth and bone movement at the cellular level with 20 minutes of daily patient use.
For more information, visit AcceleDent.com.
About OrthoAccel® Technologies, Inc.
OrthoAccel® Technologies, Inc. is a privately owned medical device company engaged in the creation, manufacturing, marketing and sales of innovative solutions that enhance dental care and orthodontic treatment. Among the company's innovations is AcceleDent®, an FDA-cleared, Class II medical device that speeds up orthodontic treatment by as much as 50 percent and reduces discomfort associated with orthodontic treatment. OrthoAccel, the Leader in Accelerated Orthodontics, has received positive feedback from patients and leading orthodontists from around the world who recommend the award-winning AcceleDent as the fast, safe and gentle solution to accelerate orthodontic treatment. Ranked on Deloitte's 2015 Technology Fast 500 as one of the fastest growing companies in North America, OrthoAccel is based in Houston, Texas and maintains a global presence through its EMEA office in Essen, Germany. To learn more about OrthoAccel's focus on improving the journey to healthy, beautiful smiles, visit AcceleDent.com.
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SOURCE OrthoAccel Technologies, Inc.
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